High claims, funding shortfalls killing the co-ops, say angry administrators

Modern Healthcare: Embittered administrators of not-for-profit health insurance co-ops on Thursday blamed higher than expected claim filings from consumers, shortfalls in federal funding and poor access to capital for the failure of nearly half of the state co-ops established under the Affordable Care Act.

In a second Capitol Hill hearing this week—this time before the House Energy & Commerce Subcommittee on Oversight and Investigations—lawmakers questioned why 12 of the original 23 co-ops have announced closure and whether the federal loans to those companies will be recovered.

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